This is positive news for multi-chain chain operator PVR INOX as excitement surrounding Allu Arjun’s return is expected to increase footfall and boost revenue.
PVR INOX stock has fallen over 11% since October 1, 2024, while its return over the past year has been -10.58%. Over a long period of 14 years, the stock had a compound annual growth rate (CAGR) of 18.83%.
Source: Upstox Pro
Since the onset of the pandemic, PVR has been grappling with challenges. The company posted losses in the first two quarters of fiscal 2025. In the April-June period, many producers postponed the release of their films due to the general elections held at the same time as the IPL. Nevertheless, the company experienced some improvement in the second quarter.
In Q2 FY25, the company reported total revenue of Rs 1,642 crore, EBITDA of Rs 20,700 crore and loss of Rs 12,000 crore. This represents a decline from Q2FY24, when revenue was Rs 202 billion, EBITDA was Rs 44.7 billion and PAT was Rs 16.6 billion. During the quarter, the company hosted 38.8 million guests, and box office revenue grew 40% sequentially, driven by strong Bollywood movies.
Box office highlights:
“Street 2” became the highest-grossing Hindi film of all time. “Deadpool & Wolverine” achieved worldwide box office revenue of $1.3 billion. Successful re-releases contributed nearly 6% of admissions.
Re-release strategy
The successful re-release was a strategic move to increase theater attendance during the slow season. Management said re-releases are profitable, especially in weeks with fewer new releases. He also said that his internal team is continually looking for opportunities to curate content for re-release.
The company plans to add 71 new screens in the first half of 2025 and open 110 to 120 new screens by the end of the year. It currently has a screening portfolio of 1,747 screens in 356 cinemas across 111 cities in India and Sri Lanka.
The occupancy rate for the second quarter of 2025 is currently 25.7%. Management is working to boost this number by focusing on improving its movie lineup and strategic planning. The company also strives to renegotiate lease terms to control costs, especially for properties that are not performing well. Managing fixed costs remains a key focus for increasing enterprise profitability.
Post-COVID-19, film production is expected to increase significantly in FY26 as filmmakers become more active, leading to a healthier release schedule. Consumer interest in the movie experience is growing, as evidenced by high participation rates in initiatives such as National Cinema Day.
Management has identified growth potential in food and beverage (F&B) spend per guest and is considering creative options to increase sales. The partnership with Devyani International is progressing well and the first food court is scheduled to open in December. Additionally, the PVR Cinemagic concept has been enhanced based on customer feedback and further expansions are planned.
Will Indian blockbuster movies revive PVR INOX stock in the long run?
A potentially strong movie with the potential to become a blockbuster like ‘Pushpa 2: The Rule’ will have a positive impact on PVR INOX stock price over time due to increased attendance and revenue Possibly. Although FY25 brought some challenges, the company’s strategic plans such as re-releases, new screen additions and partnerships, as well as the expected increase in film production in FY26, puts it in a strong position for recovery. I can say that.
However, long-term recovery depends on consistent content success, improved uptime, and effective cost management. If these factors converge, India’s blockbusters could make a significant contribution to the stock’s long-term growth trajectory.
Disclaimer: This article is for informational purposes only and does not constitute investment advice from Upstox. Past returns are not indicative of future performance. Please consult a financial advisor before trading or investing.
